HSBC Bank Canada says its bottom line improved in the third quarter due to lower loan-impairment charges and higher income from fees, trading volumes and improved investment activity.
The bank had a $201-million profit in the third quarter of 2011, up $55 million or 37.7% compared with $146 million for the third quarter of 2010.
Profit attributable to common shareholders was $182 million, up $48 million or 46.8% from a year earlier.
Loan impairment charges and other provisions for credit risk fell to $63 million, down 38.8% from $103 million in the year-earlier period.
Gross impaired loans were $686 million, down $112 million from $798 million at the end of December 2010.
Overall revenue, classified as operating income before loan impairment charges and other credit risk provisions, was $674 million — up from $630 million in the third quarter of 2010.
Net interest income was $391 million, down 3.2% from $404 million in the third quarter of 2010.
Net fee income increased to $162 million from $152 million, offsetting a decrease in net interest income to $391 million from $404 million.
Trading income increased to $46 million from $32 million in the first quarter of 2010
There was also a net gain of $22 million from financial instruments designated at fair value, in contrast to a $3-million loss a year earlier.
HSBC Canada also had $20 million in gains from financial investments, compare with nil in the third quarter of 2010.